July 10 (Reuters) - Trading and market making firm Virtu

Financial ( VIRT ) threw its support behind a proposal by IEX to launch a

new U.S. options exchange, saying the initiative could promote

competition and innovation.

In a letter to the Securities and Exchange Commission dated

July 9, Virtu called IEX's proposed platform a

"well-intentioned" step that could benefit retail investors and

enhance transparency.

IEX has proposed an options exchange that would introduce a

350-microsecond delay on trades, a speed bump aimed at curbing

advantages held by high-frequency traders and leveling the

playing field for other market participants.

However, the plan has sparked debate. Market maker Citadel

Securities and the Securities Industry and Financial Markets

Association urged the SEC to reject the proposal, arguing that

the speed bump could affect market dynamics and price discovery.

Virtu, meanwhile, said it supported efforts that "enhance

the investor experience".

"We believe that the introduction of new trading venues has

the potential to promote competition, foster innovation and

possibly deliver better trading outcomes for all market

participants," Virtu wrote.